Accounting for crime

The draft Proceeds of Crime Bill published by Jack Straw, the Home Secretary, at the beginning of March contains the long-awaited proposals for a Criminal Assets Recovery Agency (CARA) for England, Wales and Northern Ireland that would deprive criminals of their illicit wealth. For the first time, it is intended that the proceeds of crime should be recoverable through civil proceedings. Under the proposals the powers of financial investigators would also be strengthened and they would be able to seek restraint orders on property at the outset of a criminal inquiry. The Director of CARA, who would report to the Home Secretary, would have the authority to perform tax functions in cases when he had reasonable grounds for believing that the income or assets of an individual, firm or partnership originate from crime. Unlike the Inland Revenue, the Director would not need to identify the source of income but would have to show, on the balance of probabilities, that tax had not been paid.